Pusan port is a representative port of Korea which handles the most of export & import cargo and T/S cargo. Since the opening of Pusan port in 1876, Pusan port has played a pivotal role of economic development of Korea.
However, Pusan port recently faces a competitive situation because ports of worldwide, especially, ports of north China are investing port facilities in large scale.
This has become a negative factor in revitalization of Pusan port. With solutions to this problem, development of hinterland and high degree of functions which related to port are needed.
With this situation which port physical distribution Industry is in a high competitive situation, the purpose of this study is to establish a practical strategy of development in hinterland of Pusan port for making a competitive advantage comparing to other ports and value proposition. SWOT/AHP Analysis is applied for this study and it is an effective way that seasoned and professional experts can reflect their opinions quantitatively. In another word, through the positive analysis of each part (strengths, weaknesses, opportunities, threats) about hinterland of Pusan port, the strategy of development is established after the relative importance being made.
Through this study, it is expected that the increasing competitiveness of Pusan port will make port traffic increase and contribute to establish advanced physical distribution system.